2800QuarryLakeDriveSuite140Baltimore,MD21209

Tel:(410)7643500Website:www.gaineswood.com
Marketing:DironTappin(480)5638800tappin@gaineswood.com

STANDARDCOMPOSITE
PortfolioManagerWilliamW.Baker BenchmarkRussell2500Growth

Email:baker@gaineswood.com
InceptionDate01/01/1996

StyleSmallMidCapGrowth QuarterEnding06/30/2012 BACKGROUND:Gaineswood'sheritageisthe publishingofmeticulouslyinvestigatedresearch reports.Becauseofthis,thefirmisananalystdriven corpsfromtoptobottom.GaineswoodInvestment Management,Inc.isanindependentinvestment adviserregisteredwiththeSEC.Establishedin1995, Gaineswoodmanagesseparateaccounts(includingan inhouselimitedpartnership)forinstitutionsandhigh networthindividuals.FortheperiodFebruary15, 2007throughAugust9,2009thefirmwasknownas Weedflower,Inc.PriortoFebruary15,2007thefirm wasknownasGARPResearchCorporation.Fora compliantpresentationand/orthefirm'slistof compositedescriptions,pleaseseethispagefor contactinformation.

PERFORMANCE(%) 2007 2008 13.05% 23.53% 11.96% 24.35% 9.69% 41.50% QTR 1YR 6.19% 11.47% 6.44% 12.39% 5.38% 3.19% 2009 34.72% 33.47% 41.66% 3YR 17.62% 16.49% 19.38% 2010 2011 41.00% 10.56% 39.71% 11.48% 28.86% 1.57% 5YR 6.64% 5.59% 2.35% 2012 4.00% 3.49% 8.44%

StandardComposite(Gross) StandardComposite(Net) Russell2500GrowthIndex AnnualizedReturns StandardComposite(Gross) StandardComposite(Net) Russell2500GrowthIndex

SinceInception 13.37% 12.27% 6.57%

GROWTHOF$10MILLION January1,1996throughJune30,2012
$100 ($) Millions $90 $80 $70
StandardCompositeNet StandardCompositeGross

INVESTMENTPHILOSOPHY:PersistentGrowth Investingisablendofgrowth,quality,contrarianism andfundamentalanalysis.Owninghighquality growthstocksboughtatreasonablepricescantransfer thehighreturnoncapitalenjoyedbysuchcompanies intoappreciationovertime. PORTFOLIOCONSTRUCTIONANDDECISIONMAKING PROCESS:Weexaminewholeindustriestofindquality stockssellingatreasonablepriceswithcompetitive advantage.Wemakeonsitevisitstocompaniesand competitors.Weattendtradeshowsandforgelinks withprivatelyheldrivals.TheStandardComposite containsover40investments.Wehaveaproprietary mathematicalriskmanagementsystemthatallowsus tolookfortradeoffsin25possiblezonesofgrowth value.

$60 $50 $40 $30 $20 $10 1996

Russell2500GrowthIndex

2001

2006

2011

SECTORWEIGHTINGS Sector Healthcare InformationTechnology Industrials ConsumerDiscretionary Energy Financials Materials ConsumerStaples TelecomService Utilities Other

(Latestquarter) Stocks(%) Russell2500(%) 26.7% 17.6% 21.2% 29.9% 10.3% 16.1% 11.2% 18.0% 4.2% 4.7% 9.8% 10.0% 6.7% 3.9% 7.7% 1.5% 0.6%

Difference(%) 9.1% 8.7% 5.8% 6.8% 0.5% 9.8% 3.3% 3.8% 1.5% 0.6%

RISKMANAGEMENT:Sectorexposureislimitedto 2.5timesthebenchmarkforsectorsthatareover5% ofthebenchmark. GaineswoodInvestmentManagement,Inc.claims compliancewiththeGlobalInvestmentPerformance Standards(GIPS).TheU.S.Dollaristhecurrency usedtoexpressperformance.Returnsarepresented grossandnetoffeesandincludethereinvestmentof allincome.Netoffeeperformancewascalculated usingthehighestapplicablemanagementfeeof1.0%, appliedquarterly.Pastperformanceisnotindicative offutureresults.

DISCLOSURES
The Gaineswood Standard Composite invests in 3060 small and mid cap growth stocks with a North American focus which are determined by using Gaineswoods investment philosophy known as Persistent Growth Investing. This is generally done by pursuing a strategy of buying reasonably priced, high quality, rapid growing companies for threeyear or longer holding periods. Prior to November 1, 2007 this composite was known as the Core Composite; no changes to the strategy were made in conjunction with the name change. For comparison purposes the composite is measured against the Russell 2500 Growth Index, an unmanaged index comprised of those Russell 2500 companies with higher pricetobook ratios and higher forecasted growth values. The index is included in this report only as a reference reflecting general market results during the period. The index returns are gross of fees and include the reinvestment of dividends. The Gaineswood Standard Composite may trade in securities that are not represented by the market index and may have long or short concentrations in a number of securities and in asset classes that are not included in the index. Accordingly, no representation is made that the performance or volatility of this strategy will track or otherwise reflect any particular index. The index information has been obtained from sources believed to be reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Gaineswood Investment Management, Inc. expressly disclaims any liability, including incidental or consequential damages arising from errors or omissions in connection with the inclusion of any index in this publication. One cannot invest directly in an index.

2800QuarryLakeDriveSuite140Baltimore,MD21209

Tel:(410)7643500Website:www.gaineswood.com
Marketing:DironTappin(480)5638800tappin@gaineswood.com

SELECTEDCOMPOSITE
PortfolioManagerWilliamW.Baker BenchmarkRussell2500Growth

Email:baker@gaineswood.com
InceptionDate02/01/2006

StyleSmallMidCapGrowth QuarterEnding06/30/2012 BACKGROUND:Gaineswood'sheritageisthe publishingofmeticulouslyinvestigatedresearch reports.Becauseofthis,thefirmisananalystdriven corpsfromtoptobottom.GaineswoodInvestment Management,Inc.isanindependentinvestment adviserregisteredwiththeSEC.Establishedin1995, Gaineswoodmanagesseparateaccounts(includingan inhouselimitedpartnership)forinstitutionsandhigh networthindividuals.FortheperiodFebruary15, 2007throughAugust9,2009thefirmwasknownas Weedflower,Inc.PriortoFebruary15,2007thefirm wasknownasGARPResearchCorporation.Fora compliantpresentationand/orthefirm'slistof compositedescriptions,pleaseseethispagefor contactinformation.

PERFORMANCE(%) 2007 2008 21.11% 26.19% 19.39% 27.38% 9.69% 41.50% 2009 2010 2011 38.16% 35.83% 13.07% 36.25% 33.95% 14.41% 41.66% 28.86% 1.57% 5YR 5.07% 3.52% 2.35% 2012 0.76% 0.01% 8.44%

SelectedComposite(Gross) SelectedComposite(Net) Russell2500GrowthIndex AnnualizedReturns SelectedComposite(Gross) SelectedComposite(Net) Russell2500GrowthIndex

QTR 1YR 3YR 5.15% 13.62% 12.70% 5.53% 14.96% 11.06% 5.38% 3.19% 19.38%

SinceInception 8.12% 6.47% 4.23%

GROWTHOF$10MILLION February1,2006throughJune30,2012
$20 ($) Millions
SelectedCompositeGross

$15
SelectedCompositeNet

INVESTMENTPHILOSOPHY:PersistentGrowth Investingisablendofgrowth,quality,contrarianism andfundamentalanalysis.Owninghighquality growthstocksboughtatreasonablepricescan transferthehighreturnoncapitalenjoyedbysuch companiesintoappreciationovertime. PORTFOLIOCONSTRUCTIONANDDECISIONMAKING PROCESS:Weexaminewholeindustriestofindquality stockssellingatreasonablepriceswithcompetitive advantage.Wemakeonsitevisitstocompaniesand competitors.Weattendtradeshowsandforgelinks withprivatelyheldrivals.TheSelectedComposite containsabout15investments.Wehavea proprietarymathematicalriskmanagementsystem thatallowsustolookfortradeoffsin25possible zonesofgrowthvalue.

$10

Russell2500GrowthIndex

$5 2006 2007 2008 2009 2010 2011 2012

SECTORWEIGHTINGS Sector Healthcare InformationTechnology Industrials ConsumerDiscretionary Energy Financials Materials ConsumerStaples TelecomService Utilities Other DISCLOSURES

(Latestquarter) Stocks(%) 27.4% 30.0% 7.6% 1.7% 3.5% 9.6% 20.2% Russell2500(%) 17.6% 21.2% 16.1% 18.0% 4.7% 9.8% 6.7% 3.9% 1.5% 0.6% Difference(%) 9.8% 8.8% 8.5% 16.3% 1.2% 9.8% 2.9% 16.3% 1.5% 0.6%

RISKMANAGEMENT:Sectorexposureislimitedto 2.5timesthebenchmarkforsectorsthatareover5% ofthebenchmark.

GaineswoodInvestmentManagement,Inc.claims compliancewiththeGlobalInvestmentPerformance Standards(GIPS).TheU.S.Dollaristhecurrency usedtoexpressperformance.Returnsarepresented grossandnetoffeesandincludethereinvestmentof allincome.Netoffeeperformancewascalculated usingthehighestapplicablemanagementfeeof 1.50%,appliedquarterly.Pastperformanceisnot indicativeoffutureresults.

The Gaineswood Selected Composite invests in 1015 small and mid cap growth stocks with a North American focus which are determined by using Gaineswoods investment philosophy known as Persistent Growth Investing. This is generally done by pursuing a strategy of buying reasonably priced, high quality, rapid growing companies for threeyear or longer holding periodsFor comparison purposes the composite is measured against the Russell 2500 Growth Index, an unmanaged index comprised of those Russell 2500 companies with higher pricetobook ratios and higher forecasted growth values. The index is included in this report only as a reference reflecting general market results during the period. The index returns are gross of fees and include the reinvestment of dividends. The Gaineswood Selected Composite may trade in securities that are not represented by the market index and may have long or short concentrations in a number of securities and in asset classes that are not included in the index. Accordingly, no representation is made that the performance or volatility of this strategy will track or otherwise reflect any particular index. The index information has been obtained from sources believed to be reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Gaineswood Investment Management, Inc. expressly disclaims any liability, including incidental or consequential damages arising from errors or omissions in connection with the inclusion of any index in this publication. One cannot invest directly in an index.

2800QuarryLakeDriveSuite140Baltimore,MD21209 Tel:(410)7643500Fax:(410)3185048Website:www.gaineswood.com Marketing:DironTappin(480)5638800baker@gaineswood.com

GOLDCOMPOSITE
PortfolioManagerWilliamW.Baker BenchmarkDJPreciousMetalsIndex

Email:baker@gaineswood.com
InceptionDate11/01/2009

StyleSmallMidCapGrowth QuarterEnding06/30/2012 BACKGROUND:Gaineswood'sheritageisthe publishingofmeticulouslyinvestigatedresearch reports.Becauseofthis,thefirmisananalystdriven corpsfromtoptobottom.GaineswoodInvestment Management,Inc.isanindependentinvestment adviserregisteredwiththeSEC.Establishedin1995, Gaineswoodmanagesseparateaccounts(includingan inhouselimitedpartnership)forinstitutionsandhigh networthindividuals.FortheperiodFebruary15, 2007throughAugust9,2009thefirmwasknownas Weedflower,Inc.PriortoFebruary15,2007thefirm wasknownasGARPResearchCorporation.Fora compliantpresentationand/orthefirm'slistof compositedescriptions,pleaseseethispagefor contactinformation.

PERFORMANCE(%) 2007 N/A N/A N/A 2008 N/A N/A N/A 2009 N/A N/A N/A 3YR N/A N/A N/A 2010 2011 85.12% 33.38% 82.74% 34.49% 35.95% 17.35% 5YR N/A N/A N/A 2012 20.52% 21.19% 12.53%

GoldComposite(Gross) GoldComposite(Net) DJPreciousMetalsIndex AnnualizedReturns GoldComposite(Gross) GoldComposite(Net) DJPreciousMetalsIndex

QTR 1YR 19.87% 40.68% 20.24% 41.68% 9.05% 19.88%

SinceInception 4.44% 2.83% 2.40%

GROWTHOF$10MILLION Nov1,2009throughJune30,2012

$Millions

$25

$20
GoldCompositeGross GoldCompositeNet

INVESTMENTPHILOSOPHY:PersistentGrowth Investingisablendofgrowth,quality,contrarianism andfundamentalanalysis.Owninghighquality growthstocksboughtatreasonablepricescan transferthehighreturnoncapitalenjoyedbysuch companiesintoappreciationovertime. PORTFOLIOCONSTRUCTIONANDDECISIONMAKING PROCESS:Althoughasectorvehicle,theGold compositestrivestoadheretotheprocessand philosophyofGaineswoodgenerally.Weattemptto findqualitystockssellingatreasonablepriceswith competitiveadvantage.Wesupplementtraditional measuresofvaluewithassessmentsofresourcesand projecteconomics.Wemakeonsitevisitsto companiesandcompetitors.TheGoldComposite containsover40investments.

$15

DJPreciousMetalsIndex

$10

$5 Dec08

Dec09

Dec10

Dec11

Dec12

TOP10Holdings(June30,2012) Stock AfricanBarrick FirstMajesticSilver TimminsGold AlliedNevada HeclaMining MedusaMining CluffGold TahoeResources FortunaSilver MAGSilver PercentofPortfolio 6.1% 4.7% 4.3% 4.3% 4.1% 4.0% 4.0% 3.8% 3.6% 3.2%

RISKMANAGEMENT:TheGoldcomposite specializesinthepreciousmetalsandresource sectors.Positionscanexceed5%andthrough appreciation10%ofthetotal. GaineswoodInvestmentManagement,Inc.claims compliancewiththeGlobalInvestmentPerformance Standards(GIPS).TheU.S.Dollaristhecurrency usedtoexpressperformance.Returnsarepresented grossandnetoffeesandincludethereinvestmentof allincome.Netoffeeperformancewascalculated usingthehighestapplicablemanagementfeeof 1.50%,appliedquarterly.Pastperformanceisnot indicativeoffutureresults.

DISCLOSURES
TheGaineswoodGoldCompositecontainsdiscretionaryaccountsthatinvestingoldequities,preciousmetalequities,physical gold,preciousmetals,orotherequitiesrelated toresources,notlimitedtoU.S.domiciledcompanies.ForcomparisonpurposesthecompositeismeasuredagainsttheDowJonesPreciousMetalsIndex,anunmanaged indexcomprisedofU.S.companiesengagedintheexplorationandproductionofgold,silverandplatinumgroupmetals.Theindexisincludedinthisreportonlyasa referencereflectinggeneralmarketresultsduringtheperiod.Theindexreturnsaregrossoffeesandincludethereinvestmentofdividends.TheGaineswoodSelected Compositemaytradeinsecuritiesthatarenotrepresentedbythemarketindexandmayhavelongorshortconcentrationsina numberofsecuritiesandinassetclassesthat arenotincludedintheindex.Accordingly,norepresentationismadethattheperformanceorvolatilityofthisstrategywilltrackorotherwisereflectanyparticularindex. Theindexinformationhasbeenobtainedfromsourcesbelievedtobereliable,butwedonotrepresentthatitisaccurateorcomplete,anditshouldnotberelieduponas such.GaineswoodInvestmentManagement,Inc.expresslydisclaimsanyliability,includingincidentalorconsequentialdamages arisingfromerrorsoromissionsin connectionwiththeinclusionofanyindexinthispublication.Onecannotinvestdirectlyinanindex.Thismaterialisprovidedforillustrativepurposesonlyandshouldnotbe construedasanoffertosell,orthesolicitationofofferstobuy,orarecommendationforanysecurity.Compositeholdingsaresubjecttochangewithoutnotice.Acomplete listofcompositeholdingswithintheimmediatelyprecedingperiodofnotlessthanoneyear isavailableuponrequest.Itshouldnotbeassumedthatrecommendations madeinthefuturewillbeprofitableorwillequaltheperformanceofthesecuritieslisted.

2800QuarryLakeDriveSuite140Baltimore,MD21209 Tel:(410)7643500Website:www.gaineswood.com Marketing:BillBaker(410)3185020baker@gaineswood.com

FLEXIBLECOMPOSITE
PortfolioManagerWilliamW.Baker BenchmarkRussell2500Growth

Email:baker@gaineswood.com
InceptionDate02/01/2000

StyleSmallMidCapGrowth QuarterEnding06/30/2012 BACKGROUND:Gaineswood'sheritageisthe publishingofmeticulouslyinvestigatedresearch reports.Becauseofthis,thefirmisananalystdriven corpsfromtoptobottom.GaineswoodInvestment Management,Inc.isanindependentinvestment adviserregisteredwiththeSEC.Establishedin1995, Gaineswoodmanagesseparateaccounts(includingan inhouselimitedpartnership)forinstitutionsandhigh networthindividuals.FortheperiodFebruary15, 2007throughAugust9,2009thefirmwasknownas Weedflower,Inc.PriortoFebruary15,2007thefirm wasknownasGARPResearchCorporation.Fora compliantpresentationand/orthefirm'slistof compositedescriptions,pleaseseethispagefor contactinformation.

PERFORMANCE(%) 2007 2008 2009 2010 2011 2012 33.19% 15.45% 10.78% 54.22% 23.43% 17.52% 25.32% 16.23% 9.73% 43.62% 24.10% 17.89% 9.69% 41.50% 41.66% 28.86% 1.57% 8.44% QTR 1YR 3YR 8.36% 32.51% 2.69% 8.56% 33.11% 0.32% 5.38% 3.19% 19.38% 5YR 1.23% 1.46% 2.35% SinceInception 5.63% 2.89% 2.50%

FlexibleComposite(Gross) FlexibleComposite(Net) Russell2500GrowthIndex AnnualizedReturns FlexibleComposite(Gross) FlexibleComposite(Net) Russell2500GrowthIndex

GROWTHOF$10MILLION February1,2000throughJune30,2012

($)Millions

$30 $25 $20 $15 $10 $5 $0 2000

FlexibleCompositeGross FlexibleCompositeNet Russell2500GrowthIndex

INVESTMENTPHILOSOPHY:PersistentGrowth Investingisablendofgrowth,quality,contrarianism andfundamentalanalysis.Owninghighquality growthstocksboughtatreasonablepricescan transferthehighreturnoncapitalenjoyedbysuch companiesintoappreciationovertime.

PORTFOLIOCONSTRUCTIONANDDECISIONMAKING PROCESS:Weexaminewholeindustriestofind qualitystockssellingatreasonablepriceswith competitiveadvantage.Wemakeonsitevisitsto companiesandcompetitors.Weattendtradeshows andforgelinkswithprivatelyheldrivals.TheFlexible Compositecontainsover40investments.Wehavea proprietarymathematicalriskmanagementsystem thatallowsustolookfortradeoffsin25possible zonesofgrowthvalue. RISKMANAGEMENT:Attimes,theFlexible Compositemayholdsubstantialhedgestoreduce correlationwithitsbenchmark.Certainequity investmentsmayappreciatetoover5%ofholdings, butthesearelikelytobereducedwhenoverthis threshold. GaineswoodInvestmentManagement,Inc.claims compliancewiththeGlobalInvestmentPerformance Standards(GIPS).TheU.S.Dollaristhecurrency usedtoexpressperformance.Returnsarepresented grossandnetoffeesandincludethereinvestmentof allincome.Netoffeeperformancewascalculated usingactualmanagementandincentivefees.Thefee scheduleisasfollows:1.00%onallassetsfor management.Thereisalsoanincentiveallocationof 20.00%ofgainsafterexpenseswithahighwater mark.Pastperformanceisnotindicativeoffuture results.

2005

2010

SECTORWEIGHTINGS Sector Healthcare InformationTechnology Industrials ConsumerDiscretionary Energy Financials Materials ConsumerStaples TelecomService Utilities Total DISCLOSURES

(Latestquarter) Long(%) Short(%) 11.7% 6.1% 2.9% 1.3% 2.3% 36.1% 2.8% 2.7% 2.1% 7.4% 3.4% 6.7% 5.3% 1.8%

Russell2500(%) 17.6% 21.2% 16.1% 18.0% 4.7% 9.8% 6.7% 3.9% 1.5% 0.5%

63.2%

29.4%

100.0%

The Gaineswood Flexible Composite contains discretionary accounts that invest in stocks as determined by the Persistent Growth Investing philosophy, and which can from time to time maintain short as well as long equity positions. Leverage is occasionally used, and historically has only occurred through the use of margin loans and through ExchangeTraded Funds. Prior to February 17, 2009, this composite was known as the Long Biased Composite; no changes to the strategy were made in conjunction with the name change. For comparison purposes the composite is measured against the Russell 2500 Growth Index, an unmanaged index comprised of those Russell 2500 companies with higher pricetobook ratios and higher forecasted growth values. The index returns are gross of fees and include the reinvestment of dividends. The Gaineswood Flexible Composite may trade in securities that are not represented by the market index and may have long or short concentrations in a number of securities and in asset classes that are not included in the index. Accordingly, no representation is made that the performance or volatility of this strategy will track or otherwise reflect any particular index. The index information has been obtained from sources believed to be reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Gaineswood Investment Management, Inc. expressly disclaims any liability, including incidental or consequential damages arising from errors or omissions in connection with the inclusion of any index in this publication. One cannot invest directly in an index.